The Magnuson-Moss Warranty Act Compliance Essentials
If you offer a written warranty on your products, the Magnuson-Moss Warranty Act (MMWA) governs what you say, how you say it, and what you must do when something goes wrong. The Act requires plain, conspicuous closures, and bans “tie-in” provisions that condition coverage on branded parts. Noncompliance can be costly, so let’s break it down and make sure there’s no opportunity for your customers to sue.
Your compliance must look like this:
Clarity and conspicuousness of relevant information
Use simple language that’s easy for consumers to understand. State who the warrantor is (yourself); who is covered; what’s covered and what’s excluded; what you’ll do to remedy product failures and for how long; what the consumer must do and how they should obtain performance of obligations under the warranty; dispute program information; legal remedies available; and the timing at which consumers can expect you to act.
Pre-sale disclosure
Make the terms of the warranty available before the purchase. If items are sold in-store, ensure that there is in-location access to the terms pre-sale. If you’re using e-warranties, label the packaging or user manuals with the website and a non-Internet contact method.
No tie-ins
Coverage cannot be conditioned on a consumer’s use of your brand’s parts or authorized service. This is only allowed if you provide those parts or services free of charge.
Calling it a “full” warranty
There are federal minimum standards to be able to do this. These standards are: providing free repair within a reasonable time; not having any limits on the duration of the implied warranty; and providing a refund or replacement after reasonable repair attempts. If you don’t meet all of these, you must call it “limited”.
Implied warranties and Lemon laws
Even if you issue your own warranty, you can’t disclaim implied warranties. Additionally, it’s important to note that the MMWA is independent of state lemon laws, and even if that doesn’t apply to your product, the MMWA still will.
Remedy timing and cost
Remedying defects must be done within a reasonable timeframe, because if consumers incur expenses due to delays in your performance, they may recover them.
Informal Dispute Settlement Mechanisms
Warrantors are encouraged to have procedures for consumer disputes to be settled through informal dispute mechanisms. If you do, the mechanism must follow the rules put forth by the FTC, the comprehensive list of which can be found here.
Here’s a quick checklist for you to make sure you’re avoiding common mistakes:
Are our terms easily accessible, clear, and available pre-sale in every place we sell?
Does any part of our terms imply that the warranty is void if customers use other brands or independent repair services?
Do we call it a “full” warranty? And if so, do we meet federal standards?
If we offer e-warranties, are our terms posted conspicuously online with packaging directions and offline contact information?
Do our dispute resolution mechanisms comply with FTC rules?
Got questions? Need your terms looked over?
Book a free consultation at https://long.law/intake